Can Spain benefit from the strong position of successful Spanish companies abroad by reinforcing and launching its own brand during the crisis? What tools can be used to achieve this, in what sectors and what would be the basis for the project titled Spain? In order to reconstruct Spain’s brand abroad, apart from improving the reputation by changing the country’s internal reality, it is necessary to align prestige and recognition achieved by the brands of Spanish companies abroad with the country itself, creating synergies and sharing meanings and values between the two. But in order to achieve this, it is also necessary to improve the brand of Spain. Only by doing this it will be possible to restore the reputation damaged in the last years due to the economic crisis. Besides, it is important to improve the “hard” aspects of the reputation, such as quality, innovation and productivity – in all these elements Spain still lags behind.

1. Insights
Strategy Documents
I12/2011
Brand
The new Reputation
Economy and the recovery
of the ‘Spain’ brand
Spain is a mature country, with a current high risk that it will get through in
time but, above all, with an opportunity as a country, an appeal that is presently
low. Can reputation become the necessary lever to activate the brand of Spain
and overcome the present internal and external loss of confidence in the nation?
We can establish the degree of development of a aligns objectives and resources with stakeholder
country as a function of the degree of development expectations. A brand is also a dream, an aspiration
of its brands, the stronger these are, the stronger to fight for, an idea to create and fill with content in
the country brand. In fact, those countries that the minds of interest groups, and Spain as a country
have strong businesses and personal brands in has lost this, born originally during the transition
other countries are mostly those with a stronger to democracy in the 70s, and must now bring back
country brand abroad. to life a new common dream if it wants to recover
its brand, according to Javier Rovira, partner and
A brand is not only about communication, Director of Know-How Consumering and Professor
advertising, promotion and public relations, but at ESIC Business & Marketing School.
also, above all, about the associations which citizens,
clients, employees and others make from it. Brands Some ideas to define this strategy, move on and make
no longer belong to people, countries or companies, way for a new era in the history of Spain include
but to their stakeholders, who use, consume and putting an end to the idea of the two conflicting
enjoy them. Spains which lingers since the Spanish Civil War
– even before then –, mentally abandoning the
Current problems with the ‘Spain’ brand paradigms and mentality of the 19th century – also
Spain depends 90% on services, especially those before then – and recover that common dream, that
related to tourism, but, on the other hand, it is shared ambition which is lacking at this moment.
placed 66th on the world ranking for customer
orientation. One of the country’s main problems Likewise, it is necessary to deeply reform and reduce
today is the lack of a clear and defined strategy that the public administration, eliminate the significant
Document prepared by Corporate Excellence with reference to, among other sources, the intervention of Javier Rovira (partner and
Director of Know-How Consumering and Professor at ESIC Business & Marketing School), Angel Alloza (CEO of Corporate Excellence
– Centre for Reputation Leadership) and Borja Puig de la Bellacasa (Managing Director of Bassat Ogilvy PR in Spain) during the
conference “How to build a country brand” organized by ESIC Business School in Madrid in October 2011.

2. The new Reputation black market in the Spanish economy that still by the Reputation Institute in the ‘Reputation of
Economy and the exists and retrieve a truly single market, regardless Spain in the world in 2010’. The reputation of a
recovery of the
‘Spain’ brand of the logical cultural and historical differences that country has a direct relationship with the supportive
enrich the entire country, as proposed by Rovira. behavior towards it, a good country reputation leads
to a greater intention to visit it, buy its products or
Finally, the ESIC Professor considers that the services, invest, study, live and work in that country,
transparency needed to explain the current situation as we have already mentioned.
to citizens and markets (Spain will maintain, as will
other countries, a Welfare State that is possible and
not one that was desirable until recently) is also Spain’s reputation abroad 2010
essential, as well as reflecting deeply about human
capital and talent (both from a lack of resources Attribute Position
perspective due to unstoppable ageing, as from its
Leisure and entertainment 3th
own management, the redistribution of time and
labor, education and training, etc). Lifestyle 6th
Culture 7th
A new, more competitive DNA Natural environment 11th
Spain is underdeveloped – as well as in talent Global commitment 14th
management – in terms of technological
Social welfare 15th
development and in its practical application. Its
competitive profile is undefined and, in any case, Political and institutional 16th
‘A country high risk. environment
brand Brand and recognized companies 17th
It is possible that the country has been left half-way
is also a though its political transition, but especially so in
Quality of products and services 18th
Technology 20th
dream, an its economic transition from an agricultural model
and subsequently industrial, to one of services
aspiration from the 80s with strong de-industrialization and
Source: Institute of Intangible Analysis, 2010.
to fight for, disinvestment from land, but also with a lack
of commitment towards high value professional
an idea to services and the industry of the future, based on
And positive behavior has an influence on elements
of the economy, such as a greater number of visitors,
create and leading technology applied to telecommunications, more capacity to attract talent or capital, increase in
health and energy. This European country needs a
fill with new more competitive DNA for its brand, based
exports and reduction of the current account trade
deficit (the difference between the value of exports
content in on thriving companies that will drive innovation, and imports as a result of the balance of trade, etc).
equally thriving industries that will clarify the
the minds mystery surrounding Spain’s new economic model The reputation of the country brand is a strategic
of the and skills that will achieve all this through another key for business excellence, according to Angel
route, as well as a truly productive R&D.
country’s Alloza, CEO of Corporate Excellence – Centre
for Reputation Leadership. A good reputation
interest Can reputation be a way to manage this process of generates a feeling that links and makes friends
change and lead the ‘Spain’ brand towards more
groups.’ advantageous and competitive positions, in terms of
abroad (defenders), generates respect, trust, esteem
and admiration. A bad reputation, however,
innovation, talent and future, bearing in mind the increases the number of enemies (detractors) or,
direct relationship of reputation with the medium al least, reduces the number of friends outside
and long-term? In what way can the new science the country’s borders. Likewise, reputation is an
of reputational management, based on gaining, invaluable tool when it comes to recovering trust
investing and developing trust with stakeholders (which is based both on rational and emotional
via a direct relationship with them, contribute to aspects), competing in better conditions and
pull Spain out of its present situation? finally creating value. Furthermore, the increasing
interconnection between the stakeholders of a
The Spanish economy of Reputation brand makes reputational management ever more
Spain is known for its ‘softer’ variables (leisure, difficult, and adds value to the advice given (positive
lifestyle, culture, natural environment), directly or negative) and the influence of third parties in the
linked to a country essentially valued as a good behavior of others.
place to live, visit, even study, but less so to buy,
work and, above all, invest (more related with For this reason, it is essential to analyze the
‘hard’ variables such as the economic environment, origin of the favorable or unfavorable behavior
technology and the importance of its companies). towards Spain, a behavior that will then have
This is confirmed in the study undertaken by the a clear relationship with decisions of purchase,
Institute of Intangibles Analysis and developed recommendation, support, investment or protection
Insights 2

3. The new Reputation Country reputation ranking
Economy and the
recovery of the
Countries with a similarly
‘Spain’ brand
valued reputation as Spain
76,3 75,6 75,6 75,3
74,4
73,1 72,2
69,0 68,4 68,0 68,0
67,5 66,2 66,1
65,3 64,9 64,8
62,7 61,8
55,8 55,5
53,5 52,1 51,8
Sweden
Canada
Australia
Switzerland
Norway
Finland
Denmark
Austria
Holland
Belgium
Germany
Spain
Japan
Ireland
United Kingdom
Italy
Greece
France
Portugal
Singapore
Brasil
USA.
Poland
India
‘Curiously,
Spain’s
reputation Countries in the Top 5
abroad, Source: Institute of Intangible Analysis, 2010.
despite
current at times of crisis such as now. The reputation of a Puig de la Bellacasa, Managing Director of Bassat
circums- country, as with a company, is based on the direct
experience that stakeholders have of it (what the
Ogilvy PR in Spain. In his opinion, the public-
private collaboration will be key in making Spain
tances, is country does and the experience it generates), a common territory that must be supported and
better than what the country communicates (what it says of
itself) and what others say about that country (third
defended abroad. The role of the Government
is essential when building and rebuilding a
what is party opinion). The greater the recommendation, country’s reputation.
perceived the greater the reputation, is always a directly
proportional relationship. To achieve this, it is important to listen to what is
internally being said about your country, how they see you,
by Curiously, Spain’s reputation abroad, despite current
circumstances, is better than what is perceived
analyze and correctly identify the true problems and
plan a decisive and ambitious strategy, at the same
Spaniards internally by Spaniards themselves. Spain’s general time suitable and adapted to different territories
them- evaluation is placed – according to the 2010
Reputation Institute report mentioned before –
and fields. Because one cannot develop the same
country brand strategy for Spain in Africa, Asia or
selves.’ above those of the US, Japan or the UK. Latin America, where perceptions are very different,
as indicated in several studies.
On the other hand, there is also a relationship
between the improvement in reputation of a In Puig de la Bellacasa’s view, we must move on
country and the improvement of its international from the Spain of the Black (the Black Legend),
companies. Reputation is a non-financial indicator which we recently thought we had left behind but
linked to the creation – or destruction– of which has returned due to the crisis, towards the
economic, but also social value. It is the territory of Spain of the Red (the shirt color of the national
competitiveness in which a long-term vision, based soccer team), the joint successes, the team work and
on a transversal focus without silos, is allowed to common effort.
improve the ratio by which countries are compared
and assessed within the global environment in
which we find ourselves.
Conclusion: public-private
collaboration to improve reputation
And in order to navigate with success in the new
reputation economy, it is essential to involve the
public area in this joint task, according to Borja
Insights 3

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of strong brands, with good reputation and able to compete in the global market. Its mission is to be the driver which leads and consolidates
the professional management of reputation as a strategic resource that guides and creates value for companies throughout the world.
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